CBI files fresh case against FTIL, MCX-SX, SEBI members

This is development is significant because apart from the fact that the CBI has named these individuals, it has let off former Sebi chairman CB Bhave and KM Abraham, who had come under the CBI scanner.

The Central Bureau of Investigation (CBI) has filed a fresh First Information Report (FIR) against FTIL , MCX-SX, and Securities and Exchange Board of India (Sebi) members Vishakha More, Rajesh Dangeti, SV Muralidhar Rao, former Sebi member JN Gupta and Jignesh Shah.

This is development is significant because apart from the fact that the CBI has named these individuals, it has let off former Sebi chairman CB Bhave and KM Abraham, who had come under the CBI scanner. Their names have not been included in this FIR. The CBI however has recommended departmental action against Abraham. The claim according to sources in the CBI as far as Bhave is concerned is that his role in granting permission to the private exchange was what they say was not of serious nature, which warranted registering of an FIR against him.

The CBI has found enough reason to file an FIR Jignesh Shah, who is also under the Economic Offences Wing scanner. Other probing agencies like the Enforcement Directorate are also carrying out investigation. This irregularity was about Rs 5,600 crore and it remains to be seen where the CBI goes this point onwards.

 

23.08 | 0 komentar | Read More

2G, Coal…The Clean-Up Has Begun?

Published on Mon, Aug 25,2014 | 20:53, Updated at Mon, Aug 25 at 21:12Source : Moneycontrol.com 

Spectrum, Coal…The Clean-Up Has Begun?

By: Menaka Doshi, CNBC-TV18

Maybe it began with the 2G order. But I found that judgment made some wild leaps. And was vaguely worded…finally requiring a Presidential Reference to decode it. Laws may sometimes be ambiguous or seem that way in particular circumstances but judgments ought to be crystal clear. Or else they serve less than the full purpose of a justice system. In that aspect I was a bit disappointed with the 2G scam order, with due respect to the judges that delivered it.

The cancellation of over 100 telecom licenses handed out in that round of allocation, seemed extreme to many. Especially companies like Idea that claimed to be innocent victims of collateral damage. While courts must look at matters of legality objectively, some consideration of commercial consequences is welcome.

In that the Supreme Court decision on the coal block allocations matter differs from the decision on the 2G telecom licenses & spectrum matter. 

Make no mistake, this time too the Supreme Court has not minced any words…

154. "To sum up, the entire allocation of coal block as per recommendations made by the Screening Committee from 14.07.1993 in 36 meetings and the allocation through the
Government dispensation route suffers from the vice of arbitrariness and legal flaws. The Screening Committee has never been consistent, it has not been transparent, there is no proper application of mind, it has acted on no material in many cases, relevant factors have seldom been its guiding factors, there was no transparency and guidelines have seldom guided it. On many occasions, guidelines have been honoured more in their breach. There was no objective criteria, nay, no criteria for evaluation of comparative merits. The approach had been ad-hoc and casual. There was no fair and transparent procedure, all resulting in unfair distribution of the national wealth. Common good and public interest have, thus, suffered heavily. Hence, the allocation of coal blocks based on the recommendations made in all the 36 meetings of the Screening Committee is illegal."

But having said that, the Supreme Court has not also rushed to de-allocate any of these illegally granted coal block…yet. Instead it will hear further arguments on the same, giving affected companies a chance to make their commercial arguments.

157. "As we have already found that the allocations made, both under the Screening Committee route and the Government dispensation route, are arbitrary and illegal, what should be the consequences, is the issue which remains to be tackled. We are of the view that, to this limited extent, the matter requires further hearing."

So if the 2G order started the clean up in national resource allocation, the coal order is yet another important step forward. But it has maybe (I can only speculate) learned from the tumult following the 2G order and not rushed into 'consequences' yet.

So 5 quick takeaways at this point…

1. The Supreme Court order on coal allocation includes no punitive measures attached to the determination of illegality of allocations. Consequences will be determined here on. That means the SC has left the door open for affected companies to argue why the blocks must not be de-allocated, hence it has left the door open for commercial wisdom to also prevail in some measure?

2. In the interim will affected companies be certain on whether they can continue using coal from the illegally allocated blocks? As of yet I have found nothing in the SC order that stops them from doing so. Will be interesting to see how corporate lawyers interpret this.

3. The SC sends out a powerful message - no matter how far back we have to go - if a process was illegal it was illegal. And doesn't matter how much time has lapsed, how many Governments have come and gone..one can always attempt to correct it.

4. The stock market may crib and moan, corporate profits will probably be hurt (depending on the 'consequences') and that fragile thing called economic sentiment may wilt for a while…but in the long term this can only be good news for a more fair, objective and equitable national resource allocation policy.

5. This is a big win for prolific PIL filer ML Sharma - wonder if this will make him more prolific? Is that even possible?

More once I finish reading it…and on The Firm on Friday! Stay tuned…

(Here's the link to the SC judgment: http://supremecourtofindia.nic.in/outtoday/wpcrl120.pdf )

23.08 | 0 komentar | Read More

Book some profits, upside seems limited: Baliga

Watch independent market expert Ambareesh Baliga interview to CNBC-TV18's Anuj Singhal where he says the upside is limited from current levels and investors should use today's correction to book some profits.

Watch independent market expert Ambareesh Baliga interview to CNBC-TV18's Anuj Singhal where he says the upside is limited from current levels and investors should use today's correction to book some profits.

23.08 | 0 komentar | Read More

Govt to move quickly after SC final order on coal blocks

Welcoming Supreme Court judgement as ending of uncertainty, Coal and Power Minister Piyush Goyal today said the government is ready to act quickly once the court delivers its final view on the coal mines allocation, which it has declared illegal.

The government is awaiting Supreme Court to deliver its final view on how the mines "illegally" allocated between 1993 and 2010 should be treated, Goyal told reporters.

Later, Goyal went to meet Prime Minister Narendra Modi.

"The fact that this has brought to finality and closure a dispute or problem that has been for many years ... (It is) a big plus for the Indian economy. I think in fact they should have been immensely pleased that the economy can now move forward rapidly rather being cast with the shadow of uncertainty," he said.

He said the clarity of law in policy and certainty of future are the "hallmarks of a good economy and will be liked by the investor community", with coal sector poised for progress after being in "limbo" for long.

His remarks follow the Supreme Court ruling that all coal block allocations between 1993 and 2010 had been done in an illegal manner by an "ad-hoc and casual" approach "without application of mind".

"I would look forward to finality in the matter of coal block allocations, which have for several years now kept the sector in limbo, and with the finality that one can expect very soon, I hope that the sector can start progressing," he said.

"I respect the judgement of the Supreme Court and am also happy that they have set a date for further hearing," he added.

Goyal said economy can now move forward rather been cast in shadow of uncertainty and the government is ready to act quickly post the apex court's final order.

"I am happy that the Supreme Court has been pleased to announce part of the judgement today. We were eagerly waiting for the judgement for the last eight months ... I hope the work to start acting on the judgement and delivering coal to increase electricity generation in the country and reduce the imports can be expedited," Goyal said.

He said coal is "very critical" and as the judgement very rightly states "coal is king and paramount lord of industry and I am pleased the court has recognised that."

He expressed confidence that the government would be able to fulfil its promise of "twenty four by seven power supply" to the masses and the judgement will go a long way in helping it achieve its goals.

Goyal dismissed questions regarding if the apex court will decide for "de-allocation" saying it "hypothetical" to assume what the court would decide but said it "it is important that there is finality to this dispute".

"Whatever the court decides will be respected and will only help us to move forward", he said adding, whatever decision it took would be "in the interest of the country."

The apex court bench said as allocation made both under the Screening Committee route and the Government dispensation route, are arbitrary and illegal, further hearing was needed to determine the consequences for which it would hear the matter on September 1.

When asked about the Supreme Court's stay on electricity appellate tribunal Aptel's interim order on compensatory tariff, Goyal said, "Those plants were allotted on the basis of International Competitive Bidding and that process should be respected."

Aptel in its order had allowed Tata Power and Adani Power to charge hiked tariff from March 2014.

23.08 | 0 komentar | Read More

Here are some stock picks from Sudarshan Sukhani

Watch the interview of Sudarshan Sukhani of s2analytics.com with Anuj Singhal & Menaka Doshi on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.

Watch the interview of Sudarshan Sukhani of s2analytics.com with Anuj Singhal & Menaka Doshi on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.

23.08 | 0 komentar | Read More

Deja Vu: Coal blocks headed the 2G way?

The 263-page order by the apex court indicts both BJP and Congress-led governments who were in-charge for the 16 year period. The court goes on to say the screening committee has never been consistent or transparent resulting in unfair distribution of national wealth.

Metal stocks went into a tizzy after the Supreme Court pronounced that coal blocks allocated between 1993 and 2009 are illegal and unconstitutional.

The 263-page order by the apex court indicts both BJP and Congress-led governments who were in-charge for the 16 year period. The court goes on to say the screening committee has never been consistent or transparent resulting in unfair distribution of national wealth.

However, court stopped short of scrapping the allocation for the moment. It will hear arguments on September 1 to decide on the consequences of the illegality.

Remember, the CAG report in 2012 alleged windfall gains of Rs 1.8 lakh crore to private companies in coal block allocation.

The government seems to believe that auction is the best way forward and they want the Supreme Court to expedite its verdict. CNBC-TV18's Sapna Das gives us a sense of what the finance ministry is thinking at the moment.

23.08 | 0 komentar | Read More

27th Conference of the State Finance Secretaries

The 27th Conference of the State Finance Secretaries was held at Mumbai today. Chief Secretaries of 15 states and finance secretaries of 27 states and 9 Union Territories participated in the conference which was inaugurated by Dr. Raghuram G. Rajan, Governor, Reserve Bank of India.  Shri U.K. Sinha, Chairman, Securities and Exchange Board of India (SEBI) also addressed the conference. Shri Harun. R. Khan, Shri R. Gandhi and Shri S.S. Mundra, Deputy Governors, senior officials of the Ministry of Finance, Comptroller and Auditor General of India (CAG), Planning Commission, Insurance Regulatory and Development Authority (IRDA), Ministry of Corporate Affairs (MCA) and Executive Directors / other senior officers of the Reserve Bank and SEBI attended the conference.

Addressing the conference, Governor Dr. Rajan, highlighted the challenges faced by the country last year in tackling the serious issues relating to Current Account Deficit (CAD), growth slowdown, fiscal consolidation and inflation management and steps taken to restore confidence in the macro economy of the country. The Governor referred to the decline in financial savings and consequential challenges to debt management when growth and private sector credit would pick up. He cautioned against debt waiver schemes announced by State Governments pointing out at their adverse impact on the financial health of the banks whose capital needs have gone up due to enhanced prudential requirements and deterioration in asset quality and the macro economy in general. The Governor emphasised the need to strengthen the State Level Coordination Committees (SLCC) by ensuring participation at the higher level, conducting meetings at more frequent intervals and ensuring and sharing of quality information among all the stakeholders including the state government agencies, RBI, SEBI and MCA. "SLCCs should focus on financial inclusion for flow of public savings to the formal channels and protection of deposits of public mopped up by unauthorised and unscrupulous entities", he concluded.

Addressing the conference, Shri U K Sinha, Chairman, SEBI, informed the gathering about some recent changes in the SEBI Act to control unauthorised deposit schemes. He sought cooperation of the State Governments in this initiative by conducting concerted investor awareness programmes and imparting training to the officials. He suggested that States should enact depositors' investor protection act and strengthen the enforcement mechanism. He further sought co-operation of the State Governments in curbing "dabba trading".

Chief Secretaries and Finance Secretaries shared their experience and made valuable suggestions in improving the co-ordination mechanism for sharing and acting on information on unauthorised deposit taking activities under different garbs. It was also suggested that for sharing the developments and best practices and information on dubious entities, a dedicated website for SLCC members may be created.

Earlier, welcoming the participants, Shri Harun R. Khan, Deputy Governor, Reserve Bank focussed on channelising financial savings with the formal financial system like bank deposits, equity, fixed income securities and insurance products for efficient financial intermediation. He stressed that more concerted and coordinated measures would be needed by the State Government along with the national regulators to prevent flow of peoples' savings into unauthorised, illegal and unviable schemes by dubious entities. He also highlighted the need for maintaining the fiscal correction path adopted by the States for reducing GFD/GDP and Debt/GDP ratios for their benefit and the benefit of the macro economy.

The conference, among other things, discussed setting up of an Advisory Committee on revision of ways and means advances to the states; projecting of market borrowings of the State Governments for 2014-15; trends and issues in State finances, valuation of State Development Loans (SDLs), increasing spread for SDLs despite their sovereign character without any default history, investment of Consolidated Sinking Fund (CSF) and Guarantee redemption Fund (GRF) corpus and power sector reforms at the states. The Conference also focussed on e-banking for Government business, creation of an Implementation Task Force to bring uniformity and standardisation in procedures/data structure of e-receipts/payments in respect of state government transactions and establishment of an IT enabled integrated treasury portal. Issues related to strengthening the capabilities of the Business Correspondents, establishment of more brick and mortar bank branches and simplification of KYC norms for financial inclusion were also discussed. Drawing attention to the rampant incidence of unauthorised deposit collection in the recent past, it was suggested that public awareness campaigns against deposit mobilisation in different forms by unauthorised entities and fraudulent offers of large sums of prize money by fictitious mails/SMSes should be intensified besides strengthening the Economic Offence Wings (EOWs)/Cyber Cells and training of state officials.

The Reserve Bank holds the conference of State finance secretaries every year to discuss and arrive at pragmatic solutions to the problems relating to State finances including raising of SDL, cash management, risk assessment of contingent liabilities, fiscal consolidation at the level of states, electronic mode of receipts and payments and other banking related aspects of the State government transactions, financial inclusion, mechanics of central government's transfers to States, and other related issues of interest to them, Central Government and the Reserve Bank of India. This year's conference was special in terms of participation of the Chief Secretaries of State Governments in view of increasing focus on role of states in curbing the activities of unauthorised entities amassing deposits from gullible public.

Alpana Killawala
Principal Chief General Manager

Press Release: 2014-2015/401

23.08 | 0 komentar | Read More

Here's more on Shree Cement-JP Associate deal

Shree Cement will acquire the 1.5 million tonne cement grinding unit of Jaiprakash Associates at Panipat in Haryana, for Rs 360 crore. CNBC-TV18's Pragya Bhardwaj has more details on the contours of this deal.

Shree Cement  will acquire the 1.5 million tonne cement grinding unit of  Jaiprakash Associates at Panipat in Haryana, for Rs 360 crore. CNBC-TV18's Pragya Bhardwaj has more details on the contours of this deal.

Shree Cements stock price

On August 25, 2014, Shree Cements closed at Rs 7862.00, down Rs 177.5, or 2.21 percent. The 52-week high of the share was Rs 8160.00 and the 52-week low was Rs 3412.65.

The company's trailing 12-month (TTM) EPS was at Rs 228.07 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 34.47. The latest book value of the company is Rs 1103.32 per share. At current value, the price-to-book value of the company is 7.13.

23.08 | 0 komentar | Read More

SP 500 topples another record; benchmark hits 2,000

The Dow Jones Industrial Average climbed 101.63 points, or 0.6 percent, to 17,102.85.

US stocks rose on Monday, with the S&P 500 hitting the 2,000 milestone, lifted by a round of corporate deals and optimism that the European Central Bank would embark on further moves to stimulate the European economy.

Stocks held gains after a report had new-home sales in July coming in below estimates.

Remarks Friday by ECB President Mario Draghi at the Jackson Hole, Wyoming, meeting of central bankers heightened expectations of additional policy easing.

Read More 'Groundbreaking' Draghi brings cheer to markets

Burger King Worldwide is in talks to combine with Tim Hortons, the Canadian seller of coffee and doughnuts. Switzerland's Roche Holding has agreed to acquire U.S. biotechnology company InterMune for USD 8.3 billion in cash.

The Dow Jones Industrial Average climbed 101.63 points, or 0.6 percent, to 17,102.85.

Furthering its climb into uncharted terrain and topping the 2,000 mark, the S&P 500 was lately up 10.60 points, or 0.5 percent, to 1,999.00, with financials pacing sector gains.

The Nasdaq gained 26.16 points, or 0.6 percent, to 4,564.71.

For every share falling, more than two rose on the New York Stock Exchange, where 86 million shares traded as of 10:15 a.m. Eastern. Composite volume topped 357 million.

23.08 | 0 komentar | Read More

Delhi breaks ten-year-old record, observes highest maximum temperature

The record breaking spree of maximum temperatures in Delhi in August continues with the Palam Observatory recording 40.7oC as the maximum on Monday. This is the highest day temperature recorded in Delhi in the month of August in last ten years. Previous highest was 40.1oC, recorded on 11th August, 2009.

The Safdarjung Observatory also recorded 39.1oC as the maximum temperature, breaking the ten year high of 38.2oC. Delhi has been observing some very hot and uncomfortable weather for the past many days. This is this fifth consecutive day when the maximum temperature has settle close to 6 degrees above normal.

Meanwhile, the situation is expected to remain the same as there isn't any significant weather system or rain in sight very soon.

By: Skymetweather.com

23.08 | 0 komentar | Read More

Bharti, TCS join PM's 'clean India' drive; pledge Rs 200cr

Two of India's largest corporate houses - Cyrus Mistry's Tata Consultancy Services and Sunil Mittal's Bharti Foundation have joined the government's 'clean India' drive by pledging Rs 100 crore each to improve sanitation in rural areas.

Two of India's largest corporate houses - Cyrus Mistry's Tata Consultancy Services  and Sunil Mittal's Bharti Foundation have joined the government's 'clean India' drive by pledging Rs 100 crore each to improve sanitation in rural areas.

TCS will support provision of hygienic sanitation facilities in 10,000 schools across the country for girl students while Bharti foundation has adopted the Ludhiana district and will invest upto Rs 100 crore to construct toilets for rural households and schools across the district.

23.07 | 0 komentar | Read More

HCL Tech wins contract from Sydney Trains worth over $32 m

Sydney Trains provides train services in the Sydney central business district and metropolitan area. It underwent a major restructuring and was formally launched on July 1, 2013, replacing CityRail as the provider of metropolitan train services for Sydney (Australia).

HCL Technologies , country's fourth largest software services firm, has bagged a deal worth about AUD 35 million (over Rs 198 crore) from Sydney Trains to support and maintain 107 of its business applications.

Sydney Trains provides train services in the Sydney central business district and metropolitan area. It underwent a major restructuring and was formally launched on July 1, 2013, replacing CityRail as the provider of metropolitan train services for Sydney (Australia).

Also read: India's top 100 brands valued at USD 92.6bn; Tatas top list

"Under the contract, valued at AUD 34.9 million, HCL Australia Services will provide support and maintenance services for 107 business applications," a Sydney Trains spokesperson told PTI.

Last year, the rail operator had sought to replace a network of 11 different external suppliers which had been supporting and maintaining its business applications.

The partnership follows a recommendation from the 2012 NSW Commission Audit, which found 130 corporate systems in use across the transport cluster, and suggested that amount be reduced to between 8 and 24 in order to reap annual savings of
USD 100 million.

Sydney Trains operates 176 stations and provides 277 million customer journeys annually. HCL Technologies in Australia and New Zealand (ANZ) is headquartered in Sydney with offices and delivery centres at Melbourne, Canberra, Brisbane, Auckland and Wellington and servicing clients across Sydney, Melbourne, Brisbane, Perth, Auckland, Hamilton and Wellington.

HCL Tech stock price

On August 18, 2014, HCL Technologies closed at Rs 1527.30, down Rs 13.1, or 0.85 percent. The 52-week high of the share was Rs 1630.00 and the 52-week low was Rs 872.00.

The company's trailing 12-month (TTM) EPS was at Rs 85.44 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 17.88. The latest book value of the company is Rs 146.09 per share. At current value, the price-to-book value of the company is 10.45.

23.07 | 0 komentar | Read More

TOP TEN RAINIEST CITIES IN INDIA ON SUNDAY

Once again Cherrapunji in Meghalaya received heavy showers of 134 mm. It has a monthly average rainfall of 1914.4 mm and has already received 1656.8 mm of rain and could easily surpass the monthly average. According to the latest weather update by Skymet Meteorology Division in India, rainy weather is likely in East and Northeast India for next 24 hours, but with reduced intensity.

Here's a look at our list of top ten rainiest cities in India on Sunday:

Cities State Rainfall (in millimeters) Cherrapunji Meghalaya 134 Baharampur West Bengal 88 Machilipatnam Andhra Pradesh 83 Malda West Bengal 64 Cuttack Odisha 61 Patna Bihar 40 Shirali Karnataka 40 Krishnanagar West Bengal 35 Angul Odisha 33 Nan cowry Andaman & Nicobar 30  

By: Skymetweather.com

23.07 | 0 komentar | Read More

Where's that wedding?

Where's that wedding?

Let's face it: the big fat Indian wedding isn't for everyone. Hosting a wedding in your home town means having to invite everyone and the kitchen sink, which isn't exactly wallet-friendly. What if there was a happy solution where you could inject all the joy of a wedding into a new location and maybe pay less for the whole shebang? Luckily, there is. Destination weddings are all the rage with more and more couples opting to wed out of town. We've thrown together a list of the hottest places to host your nuptial shindig so you and your family can make the best of the occasion.

 

Goa Beachside weddings have a charm to them that's unforgettable and Goa's beaches speak for themselves. Luxury hotels like the Leela - near the secluded and exclusive Morbor beach - do a great job of planning weddings and ensure you have the best of services. If you're looking to plan a church wedding, Goa's historic baroque churches make the perfect venue. The Basilica of Bom Jesus, which houses the mortal remains of St Francis Xavier, is a particularly popular choice with couples.

 

Jaipur The mere mention of Jaipur conjures up images of royalty. For a bride and groom who'd like to feel like the king and queen on their big day, Jaipur's the place. The options are vast and varied. The Alisisar Haveli is a good 'budget' option. Built in 1892, it captures the romance of another century. If you want to go all-out-regal, there's the luxurious Rambagh Palace, the former residence of the Maharaja of Jaipur and now a Taj hotel, or the spectacular Neemrana Fort-Palace, established by Raja Dup Raj in 1467.

 

Thailand  Thailand has plenty of wedding location options with the added benefit of being close to home, affordable and a great shopping destination. Bangkok's atmosphere is buzzing with potential. Most hotels offer excellent wedding packages. For the 'wow factor' you can't beat the rooftop bar at the Lebua at Sky Tower. Stunning views set the backdrop of your wedding while your guests wet their whistles at the bar.

Pattaya, 165km south of Bangkok, has some great deals for weddings, too. The three-kilometre coastline provides the ideal setting for a beach wedding, and there are plenty of hotels and resorts that cater to special wedding needs, most with special wedding packages. If you're looking to splurge, the Sheraton Pattaya Resort is the ticket to a lavish wedding on their private beach. Just offshore, Phuket is also a great place to let your hair down. Do things a little differently and get married over the water. At the Laguna Phuket resort, you can exchange vows on the Chapel-On-The-Lagoon. Get a 360° view from the quaint chapel that sits on stilts over the water.

 

Bali  With its varied landscape Indonesia's visitor-friendly island of Bali has an endless list of wedding locations. Couples can opt for an exotic cliff-top ceremony with a BBQ dinner overlooking the Indian Ocean, or a traditional wedding with Balinese costumes at the Khayangan Estate. The Villa Infinity Bali is located among rice terraces and is also a spectacular location for a wedding. If you want to do something adventurous, why not get married under water? Scuba Dive Bali organises underwater weddings for both certified and non-certified divers.

 

Mauritius The island of Mauritius has some exciting options, too. Hire a private catamaran and exchange vows as you sail across the Mauritian lagoon. Want to go underwater without getting wet? Opt for a submarine wedding that will let you enjoy the world underwater without ruining your wedding dress. Once the wedding is done you and your guests can indulge in fun activities like water sports, safari adventures, hiking trips, or the hugely-popular big game fishing.

 

Dubai Think Dubai, think opulence. Make like the Sheikhs and go all out in Dubai. If beach weddings are too cliché, the Al Maha Desert Resort does desert weddings among beautiful sand dunes. For a nuptial extravaganza head to the Atlantis – The Palm. They're fully-equipped to take on Indian jamborees so get out the choreographer and the mehendi cones. Remember though, that for a wedding to be official in Dubai it must be conducted in a place of worship, and certain nationalities must head to their local embassy to tie the knot.

 

Tip: It's a good idea to do your research on the legal matrimonial formalities of the country you've chosen. It is also advisable to hire a professional wedding planner who will take care of permits (beaches, palaces and public spaces often require these for large gatherings) and legalities in their respective countries.

23.07 | 0 komentar | Read More

Hold Dishman Pharma; target of Rs 146: Sharekhan

Sharekhan has recommended hold rating on Dishman Pharma with a target price of Rs 146, in its research report dated August 14, 2014.

Sharekhan`s research report on Dishman Pharma

"Dishman Pharma reported a weak performance for Q1FY2015, as reflected in a 525-BPS decline in the OPM and a 34% drop in the adjusted net profit, though the top line grew by 18%. The weak performance of Q1 can mainly be attributed to a change in the product mix and the effect of a high base (in H1FY2014 the company had exceptionally high revenue from a particular client).Though the Q1 performance appears to be an aberration, but we would like to highlight that the CRAMs business in general is susceptible to lumpiness and Dishman Pharma in particular is not known to show consistency in performance. However, the company's growth story remains intact barring the occasional hiccups."

"The management has maintained the guidance of Rs1,500 crore of revenues and 26-27% EBIDTA margin in FY2015, as it hopes H2FY2015 would be stronger. We largely maintain our earnings estimates (our assumptions include margins lower than indicated in the guidance). We downgrade the stock to Hold and retain our price target of Rs146," says Sharekhan research report.  

For all recommendations, click here  

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

23.07 | 0 komentar | Read More

Hold Tata Steel; target of Rs 575: ICICIdirect

ICICIdirect.com has recommended hold rating on Tata Steel with a target price of Rs 575, in its research report dated August 18, 2014.

ICICIdirect.com`s research report on Tata Steel

"Tata Steel reported a mixed set of Q1FY15 (consolidated) numbers wherein topline came in lower than our estimate on account of subdued sales volume while EBITDA margin came in higher than our estimate. PAT came notably lower on account of impairment charge taken for the Benga project. Indian operations reported steel sales volumes of 2.1 MT, up 5% YoY (our estimate: 2.2 MT) whereas European operations reported steel sales volume of 3.2 MT (our estimate: 3.5 MT). On a consolidated basis, total steel sales volume for the group stood at 6.4 MT lower than our estimate of 6.7 MT. Due to lower-than-expected sales volume, topline came in lower than our estimates. The company reported a consolidated net income from operations of Rs 36427.2 crore for the quarter, down 14.1% QoQ but up 11% YoY and below our estimate of Rs 39296.9 crore."

"The consolidated EBITDA came in at Rs 4272.6 crore (EBITDA margin of 11.7%), down 14.7% QoQ but up 15.8% YoY and in line with our estimate of Rs 4336.4 crore (EBITDA margin expectation of 11%). EBITDA/tonne for Indian operations was at Rs 15528/tonne (our estimate: Rs 15008/tonne) while adjusted EBITDA/tonne for European operations came in at ~US$48/ tonne (our estimate: US$40/tonne). The consequent consolidated PAT came in at Rs 337.3 crore (our estimate: Rs 2224.1 crore). PAT came in lower on the account of an impairment charge the company undertook for its Benga project, which resulted in non-cash write down of Rs 1577 crore."

"The company's Indian operations are expected to continue to provide stability of earnings while its European business has reported operational efficiencies in the last few quarters on a consistent basis. We have valued the domestic operations at 6.5x FY16E EV/EBITDA and European operations at 5x FY16E EV/EBITDA. We have arrived at a HOLD recommendation on the stock with a target price of Rs 575," says ICICIdirect.com research report.    

For all recommendations, click here  

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

23.07 | 0 komentar | Read More

Asia week ahead: Japan trade, China flash PMI

After a raft of disappointing figures last week, investors will be looking at data due from Japan and China in the week ahead, for further cues on the health of Asia`s two largest economies. Monthly indicators from the US, along with corporate earnings from Australia and Hong Kong, will also be on the watch list.

On Monday, China releases its July house price index and investors are bracing for a weak result. A report from the China Index Academy (CIA) showed property prices declined for the third consecutive month in July.

HSBC`s preliminary reading of China`s purchasing managers` index (PMI) for the month of August is due on Thursday. Government data showed the mainland`s manufacturing activity rebounding to 51 in June while the bank`s final reading stood at 50.7.

"The past week has seen softer than expected outcomes for industrial production, retail sales, fixed investment and credit growth so markets will keenly await the HSBC flash PMI. A dip in August would be seen as a further sign that Chinese activity has slowed noticeably from its strong second quarter pace," analysts from the National Australia Bank wrote in a note.

In Japan, trade data for July is scheduled for release on Wednesday at 0850 SIN/HK and is expected to rise for the first time in 3 months - a sign that demand overseas is starting to recover.

A Reuters poll of 26 economists forecast exports to increase 3.8 percent in the year to July, with a 1.7 percent annual decline in imports, led largely by a slowdown of crude oil and other energy imports.

Australia`s central bank will also be in focus on Tuesday with minutes from its August policy meeting due, along with Governor Steven`s Semi-Annual Parliamentary testimony on Wednesday.

"[Both events] are likely to confirm that rates will remain on hold but with a slight dovish bias. Of particular interest will be the Governor`s comments on the Australian dollar which may see a bit more follow on jawboning," Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital wrote in a note.

The spotlight also falls on Thailand`s second-quarter gross domestic product (GDP) due Monday. Moody`s Analytics sees a contraction of 1.9 percent year-on-year, following a 2.1 per cent shrink in the January-March period after prolonged political unrest.

Singapore is also on GDP-watch, with its final growth data for the second quarter due on Friday 0800 SIN/HK. The government`s advance estimate showed the city-state contracting in April-June for the first time in seven quarters, hit by a sharp drop in manufacturing activity.

The country`s non-oil domestic exports (NODX) for July is also due on Monday, which Moody`s Analytics expects a growth of 3 percent.

"Singapore`s manufactured exports continue to diversify away from electronics and the city`s increased capacity to produce pharmaceutical drugs has boosted exports to the U.S. and Europe. The global shift away from PCs is hurting Singapore`s tech producers. Exports of semiconductors and other PC components are falling at double‐digit year‐on‐year rates and this is likely to continue," analysts wrote in a note.

Earnings in full swing

Australia`s mining giants will report this week, namely BHP Billiton , Fortescue Metals, Newcrest Mining, Woodside Petroleum, Santos and Alumina . In Hong Kong, investors will be awaiting results from the likes of Bank of China  and Ping An Insurance.

A slew of U.S. monthly indicators, namely Tuesday`s July inflation data and housing starts, as well as Thursday`s Markit manufacturing PMI and existing home sales, are also likely to be in focus for regional markets this week. The minutes from the Fed`s last meeting and Fed`s Jackson Hole symposium on Thursday will also be closely monitored for any changes to the Fed`s rate hike timeline.

Copyright 2011 cnbc.com

23.07 | 0 komentar | Read More

Hold Hindalco; target of Rs 200: Arihant capital markets

Arihant capital markets has recommended hold rating on Hindalco Industries with a target price of Rs 200, in its research report dated August 18, 2014.

Arihant capital markets research report on Hindalco Industries

"Hindalco reported rise in its EBITDA margin to 9.4% from 8.2% on YoY basis largely due to decline in other expenses. Revenues increased by 37% on the back of higher premium (over LME prices) and higher volumes (new capacities becoming operational). LME prices for the quarter reduced from $ 1834/t to $1,798/t but the impact was more than offset by higher premium ($ 367/t from $ 247/t) and lower Rupee (59.35/$ from 55.94). PAT decreased by 30.9% to Rs 328 crs largely due to increase in Interest outgo which was along the expected lines. Copper business, on the back of higher TC/RCs reported YoY improvement in EBIT margins to 6.3% from 2.2% (margins was lower due to planned shutdown). Copper cathode volumes increased to 96 kt from 68 kt on YoY basis. However, DAP production declined to 36 kt from 56 kt owing to annual and expansion related shutdown. On comparable basis production of Alumina declined by 16.6% YoY to 291kt. Production suffered due to availability of bauxite at Renukoot plant. Aluminum (ex‐Mahan) on comparable basis improved marginally by 0.6% YoY to 145kt. Total Alumina production (including Greenfield project) was 499kt whereas for Aluminum it was 190kt."

"Novelis has been posting decent show quarter after quarter. Also domestic operations are performing well, with copper business expected to continue its robust performance and aluminum business poised for growth after completion of capex and start of production at new bauxite mine, Utkal alumina refinery and Aditya & Mahan smelter. We have valued Novelis at 6.0x FY16 EV/EBITDA and domestic operations at 5.0x FY16 EV/EBITDA. We have valued investments at Rs 23 per share (25% disc to book value). Our SoTP value for Hindalco stands at Rs 200 per share and recommend HOLD rating on the stock," says Arihant capital markets research report. 

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

23.07 | 0 komentar | Read More

Here are some commodity trading ideas from Dharmesh Bhatia

Watch the interview of Dharmesh Bhatia Kotak Commodity Services with Shereen Bhan on CNBC-TV18, in which he shared his reading and outlook on commodity markets and specific commodities.

Watch the interview of Dharmesh Bhatia Kotak Commodity Services with Shereen Bhan on CNBC-TV18, in which he shared his reading and outlook on commodity markets and specific commodities.

23.07 | 0 komentar | Read More

MCX board approves Kotak investment; to shy away from FTIL

In a move seen as an attempt to distance itself from Financial Technologies, the board has decided not to depend on one vendor for its software. Currently, FTIL is the only provider of software.

After a meeting today, the MCX board has given in an in-principle approval to Kotak Mahindra Bank  buying 15 percent stake for Rs 459 crore. In addition, it is also reworking with Kotak to renegotiate the terms of agreement of the contract in light of the PwC report.

The PwC report had earlier pointed out that around Rs 700 cr was spent by MCX for services availed of from FTIL and no evidence that MCX sought quoted from global or Indian technology while awarding these contracts.

In a move seen as an attempt to distance itself from Financial Technologies , the board has decided not to depend on one vendor for its software. Currently, FTIL is the only provider of software.

They are also likely to make changes to exit clause and reduce the tenure of software contract to 10 yrs from 33 yrs. MCX board, FTIL and FMC have also requested SEBI to waive the 2 percent cap on FTIL that prevents them from exiting their stake in MCX completely. After this waiver, FTIL will be allowed to sell remaining 5 percent stake in MCX even via block deal.

Also read:  MCX attains highest market share since Oct 2013

Kotak Mahindra stock price

On August 18, 2014, Kotak Mahindra Bank closed at Rs 968.00, up Rs 15.20, or 1.60 percent. The 52-week high of the share was Rs 979.35 and the 52-week low was Rs 588.00.

The company's trailing 12-month (TTM) EPS was at Rs 19.84 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 48.79. The latest book value of the company is Rs 159.25 per share. At current value, the price-to-book value of the company is 6.08.

23.07 | 0 komentar | Read More

Here are some commodity trading ideas from Dharmesh Bhatia

Watch the interview of Dharmesh Bhatia Kotak Commodity Services with Shereen Bhan on CNBC-TV18, in which he shared his reading and outlook on commodity markets and specific commodities.

Watch the interview of Dharmesh Bhatia Kotak Commodity Services with Shereen Bhan on CNBC-TV18, in which he shared his reading and outlook on commodity markets and specific commodities.

23.07 | 0 komentar | Read More

Good trading session for Nifty; ends the day at 7626

Good trading session for the Nifty today, pulled back most of the losses that we saw on Friday's trading session and the Nifty was down 80 points odd in Friday's trading session while today in fact it pulled back close to around 57 points odd.

Importantly the global cues were supportive and the Nifty started off with a gain of around 50 points and we sustained those gains till the time we wound up.

23.07 | 0 komentar | Read More

Kota sets new records this Monsoon

Southwest Monsoon remained active over Kota as the city experienced good rainfall last week. For three consecutive days from the 6th of August, the city experienced 41 mm, 54 mm and 116 mm of rain. The city has received 255 mm of rain last week, which is more than the monthly average of 244 mm, for the month of August.

116 mm of rain, recorded on the 8th of August, was the second highest in the last 10 years. The highest 24 hours rainfall, in the last ten years, being 126.3 mm, recorded on 16th August 2004. However, the all-time high for Kota, in the month of August, has been 179.7 mm which was recorded on 31st August 1978.

According to the latest weather update by Skymet Meteorology Division in India, with just one-third of the month passing by, we can hope for good monsoon rains for the city subsequently.

In the month of July also, the city recorded 360.6 mm of rain, the third highest in the last 10 years and way above the monthly normal. The monthly normal is 279.8 mm. The highest rainfall was observed in 2004 with the count of 534.9 mm and the second highest being 419.1 mm, recorded in 2006. The all-time high, for the month of July, has been 462.2 mm, recorded in 1978.

Where the monsoon rains still remain deficit over many parts of the country, it has brought some respite in Kota, which generally observes only 11 rainy days in August every year. Located in eastern part of Rajasthan, it remains a low intensity pocket, although better than Western part of Rajasthan.

Kota observed only 8 mm of rain in June; against the normal of 75 mm. Rains picked up only after 11th July and have been pouring a great deal in August too.

picture courtesy- patrika.com

By: Skymetweather.com

23.07 | 0 komentar | Read More

Oppn targets PM in RS over statement on WTO

Accusing him of "belittling" Parliament and "misinforming" people on the issue at a time when the House is in session, Congress members attacked Modi for "contradicting" his own Commerce Minister Nirmala Sitharaman on the matter.

Congress today created uproar in Rajya Sabha and targeted Prime Minister Narendra Modi over his remarks that the previous UPA government sacrificed the interests of the poor at WTO and demanded a clarification from him in the House along with a discussion.

Accusing him of "belittling" Parliament and "misinforming" people on the issue at a time when the House is in session, Congress members attacked Modi for "contradicting" his own Commerce Minister Nirmala Sitharaman on the matter.

The House saw two adjournments on the issue during Question Hour as Congress created uproar saying there were inconsistencies in government statements on WTO though Finance Minister Arun Jaitley asserted there was no contradiction.

Modi, while addressing the BJP National Council on Saturday, had accused UPA of sacrificing the interests of the poor at WTO by signing an Agreement and claimed that the new government had on the contrary stood firm on food security
issue at the recent Geneva round of talks.

Attacking Modi for his remarks, Congress member and former Commerce Minister Anand Sharma said, "We cannot allow a situation that Prime Minister of the country will try to belittle and misinform when the House is in session."

"The charge against us is made by none other than the Prime Minister of India. It has to be clarified because it misleads the country...It is the Prime Minister of India who has contradicted his own Minister. He should come to the House and explain," he said.

Digvijay Singh (Cong) joined him in questioning why the Prime Minister has contradicted his own Minister who claims there is no change in the government's stand at WTO.

"The Prime Minister has made disparaging remarks against the previous government," he said, adding that the Commerce Minister has stated that the Government has not deviated from the previous government's stand.

"He must explain. He is contradicting the Minister," he said, as the treasury benches reacted saying he cannot cast aspersions on the Prime Minister.

23.07 | 0 komentar | Read More

Foreign Exchange Turnover Data

The Reserve Bank of India today released the data showing daily merchant and inter-bank transactions in foreign exchange for the period July 14, 2014 to July 18, 2014.

All Figures are in USD Millions
Position Date	MERCHANT						INTER BANK
	FCY / INR			FCY / FCY			FCY / INR			FCY / FCY
	Spot	Forward	Forward Cancel	Spot	Forward	Forward Cancel	Spot	Swap	Forward	Spot	Swap	Forward
Purchase
7/14/2014	2,215	890	346	565	185	173	6,891	7,355	418	2,069	1,153	27
7/15/2014	2,058	1,478	605	328	102	134	6,859	7,710	474	2,816	1,381	51
7/16/2014	2,239	1,223	480	408	108	118	6,308	7,556	709	2,424	1,304	19
7/17/2014	1,996	814	748	174	88	99	6,159	6,168	773	1,850	1,005	85
7/18/2014	2,316	1,462	583	301	125	159	7,423	6,178	900	2,484	1,386	122
Sales
7/14/2014	2,679	722	683	566	187	180	7,131	7,671	389	2,047	1,161	25
7/15/2014	2,363	1,199	888	315	102	128	6,786	8,869	620	2,834	1,461	43
7/16/2014	2,506	1,706	1,219	403	98	118	6,396	8,092	496	2,378	1,360	18
7/17/2014	2,318	971	1,349	172	82	107	6,038	6,939	973	1,825	1,073	61
7/18/2014	2,847	2,505	1,335	298	124	157	7,394	6,711	644	2,488	1,425	137
(Provisional Data)

Alpana Killawala
Principal Chief General Manager

Press Release : 2014-2015/306

23.07 | 0 komentar | Read More

Will re-establish Jet Airways as master brand: Naresh Goyal

In the first quarter, the airline has posted a net loss of Rs 217 crore- this is lower than the Rs 355 crore loss recorded a year ago.

Pilots at  Jet Airways may have reportedly threatened to go on strike unless the airline clears salary arrears to the tune of Rs 100 crore by August 20. But the airline is not worried. It says it had created a provisioning for these arrears in March 2013 itself. But Jet is seeing some relief when it comes to profitability.

In the first quarter, the airline has posted a net loss of Rs 217 crore - this is lower than the Rs 355 crore loss recorded a year ago.

The company sees this as a sign that its 3-year turnaround strategy is bearing fruit and is targeting a net profit by 2017 on the back of a new 'single-brand strategy'.

Naresh goyal, chairman, jet airways said, "Today, at our board meeting we have received approval for our next critical step, to re-establish Jet Airways as a single master brand. This would mean harnessing our product proud heritage and original values in one consistent predictable and clearly recognized full service brand and also promise you Jet Airways used to be known as a Swiss clock operation, you cannot adjust your clock when you go. This will happen soon."
 

Jet Airways stock price

On August 11, 2014, Jet Airways closed at Rs 246.25, up Rs 1.90, or 0.78 percent. The 52-week high of the share was Rs 414.70 and the 52-week low was Rs 210.25.

The latest book value of the company is Rs -196.11 per share. At current value, the price-to-book value of the company was -1.26.

23.07 | 0 komentar | Read More

Six things you need to know about IFB Industries

CNBC-TV18's Nigel D'Souza gets six things you need to know about IFB Industries .

23.07 | 0 komentar | Read More

Financial inclusion will reduce corruption: RBI governor

RBI Governor Raghuram Rajan today said the financial inclusion drive, likely to be announced by Prime Minister Narendra Modi on August 15, will break the link between poor public services, patronage and corruption.

"It can break a link between poor public service, patronage, and corruption that is growing more worrisome," Rajan said, delivering 20th Lalit Doshi memorial lecture here.

The drive is likely to include identifying the poor, creation of unique biometric identifiers, opening bank accounts linked to these identifiers and eventually transferring government subsidies to these accounts.

"When fully rolled out, I believe it will give the poor the choice and respect as well as the services they had to beg for in the past," Rajan said, adding that financial inclusion will be an important part of government's and Reserve Bank's plans for the coming years.

Rajan laid extra stress on the cash benefit transfers, saying "money liberates and empowers".

He also said profitability for banks is very crucial for the success of the scheme, and mentioned ideas like government paying the bank commission for transfers.

To prevent the hazard of people squandering the money on alcohol, etc, Rajan said the money could be transferred to the women of the family, who are generally better spenders.

Other aspects such as linking the transfers to conditions like children attending the school regularly too can be looked at, he said.

Acknowledging that a corrupt monitor will vitiate the entire effort, Rajan advocated that we should still go ahead with the efforts and look for automation on monitoring wherever possible.

Coming out against the hazard of transfers making one addictive, Rajan stressed the need to use cash transfers as a tool to build capabilities in education and health-care, rather than using the resources only for inessential consumption.

Still, if data on misspending emerges, we can look at alternatives such as giving some of the benefit in the form of electronic coupons which can be used by specified individual for a narrow purpose like food, education or health-care, Rajan said.

In the financial inclusion drive, RBI will play the role of enabler and undertake efforts like "to nudge" banks to offer all the basic products to address financial needs.

Rajan also said the central bank is looking at re-examining KYC norms, to simplify them. He also stated that RBI's efforts to open the payment banks and small local banks are directed at deepening the financial inclusion itself.

He said inclusion of new and inexperienced bank account holders will require protection, and hence RBI is beefing up 'consumer protection code' which will emphasise the need for simple and easy to understand banking products.

"We are strengthening the customer grievance redressal mechanism, while looking to expand supervision, market intelligence, and coordination with law and order to reduce the proliferation of fly-by-night operators," he said.

Additionally, RBI is also working with the government to expand the financial literacy, he said.

23.07 | 0 komentar | Read More

EOW arrests 7 borrowers in NSEL probe

These arrests take the count of arrests to a total of 10 out of 24 borrowers.

The Economic Offences Wing of the Mumbai Police has arrested seven borrowers as the NSEL probe gathers pace. Together, these seven borrowers owe more than Rs 1,000 crore.

Officials have been called in from all over the country for regular questioning by the EOW and after a few hours of questioning these seven people have been detained primarily because they felt that custodian interrogation was necessary to obtain more information. There's also the suspicion that the money that had been given to the borrowers by the exchange had been illegally routed to real estate projects.

These arrests take the count of arrests to a total of 10 out of 24 borrowers.

When questioned about the brokers that have been accused and alleged by most of the investors and NSEL themselves, Rajvardhan, the EOW officer simply asked not be be questioned about the brokers for the next one month. So, we might see a little slowdown in the arrests coming up. 

23.07 | 0 komentar | Read More

Cos Act Ep#15: Sick Companies

Friday: 10.30 pm, Saturday: 11.30 am

Sunday: 9:30am & 11.00pm

Published on Mon, Aug 11,2014 | 21:23, Updated at Mon, Aug 11 at 21:31Source : CNBC-TV18 |   Watch Video :

The new company law was meant to provide India a modern bankruptcy regime, in which sick companies are given some tender loving care for revival and terminally ill companies are allowed to die or wind up in the most efficient manner possible. Does the Companies Act, 2013 – in its provisions for revival and rehabilitation of sick companies and winding up - fulfil these needs? Watch a discussion with Alok Dhir, Fereshte Sethna & MR Umarji on Companies, Act!

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23.07 | 0 komentar | Read More

Buy Raymond; target of Rs 500: FinQuest Securities

FinQuest Securities is bullish on Raymond and has recommended buy rating on the stock with a target of Rs 500 in its August 04, 2014 research report.

FinQuest Securities research report on Raymond

"Raymond limited (RYMD) came out with decent set of numbers for Q1FY15. Sales grew by a good 26% Y-o-Y to Rs 10.97bn while the proforma loss narrowed Y-o-Y from Rs 409mn to Rs 290mn. However it was a steep drop from the Rs 150mn adj. profit it made in Q4FY14. A Rs 500mn boost from the shirting business bolstered the textile segment's growth to 27% Y-o-Y thus aiding in the company's overall growth. But this growth came at a cost as the margins were relatively lower compared to suiting fabric, thus pulling down the overall profitability of the Textile segment, and of the company as a whole. EBITDA margin was nearly flat Y-o-Y at 3.5%, however the sequential contraction was quite sharp at 626bps. The seasonally slow quarter of Q1 partly contributed to the contraction in margins. Coming to the business highlights, the Textile segment which has been the cash cow for the company performed better on the top line posting a growth of 27% Y-o-Y to Rs4.84bn, while margins expanded Y-o-Y by 60 bps though there was a sharp sequential contraction of 1000bps. Core textile sales grew 13% while the shirting business contribution aided in boosting the segment growth to 27%. Apparel segment continued to post good double digit top line growth over the past three quarters as sales grew 13.5% Y-o-Y to Rs 1.8bn in Q1FY15 but this is the segment which off late has impacted overall margins negatively, as it fell from a recent peak of 8.4% in Q3FY14 to -3.3% in Q1FY15. But one positive of this segment was that the company has been able to reduce the working capital requirement during the quarter which should boost the bottom line of this segment. Aggressive investments on revamping showrooms and higher advertising expenses (up 63% Y-o-Y) during the quarter were the main reasons for the margin drop. Garmenting was the best performing segment off late bettering its growth each consecutive quarter. Sales was up 50% Y-o-Y to Rs 1.24bn while margins also expanded 440 bps Y-o-Y to 12.9%. The company is operating at full capacity and is looking to expand facilities to boost production."

"The company mentioned that it was optimistic of the demand scenario improving over the next 6 months and would continue to invest in brand building, modernization and expansion of retail network and capacity expansion in export driven business (mainly garmenting). The company was becoming more aggressive on the e-commerce front with plans of offering Made to Measure (MTM) offerings through e-commerce portals. Management mentioned that in spite of new investments in export led businesses and revamping of stores and advertising expenses in FY15 it expects to deliver similar margins as FY14. The management expects the raw material prices to be stable but highlighted that the cotton prices would depend on monsoon and the overall output this year."

"We value the core equity of RYMD at a P/E of 14x FY15E earnings, which gives us a value of Rs 279/share while we value the land bank at Thane at 25% discount to the expected market value which comes to Rs 221/share giving a combined price target of Rs 500 for FY15E. Since the company is investing aggressively on boosting its apparel and export businesses earnings could be better in FY16E and valuation multiple could inch up and the company might be rerated. Any stake sale of its non-core businesses like the Tools and hardware business or the auto components might be positive for the stock price," says FinQuest Securities research report.

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

23.08 | 0 komentar | Read More

Buy Prestige Estates; target of Rs 284: Motilal Oswal

Motilal Oswal is bullish on Prestige Estates Projects and has recommended buy rating on the stock with a target of Rs 284 in its August 02, 2014 research report.

Motilal Oswal`s research report on Prestige Estates Projects

"Prestige Estates' (PEPL) 1QFY15 standalone revenue grew 13% YoY to INR5.6b (v/s est. of INR4.8b). Key projects to have contributed to revenue largely are Bella Vista, Teck Park III, Tranquility, White Meadows etc. EBITDA stood at INR1.4b, +6% YoY (v/s est. of INR1.2b), translating into margin of 24.3%. PAT stood at INR1b, +20% YoY, v/s est. of INR0.72b, led by higher other income which comprises profit from few joint venture projects. PEPL launched its flagship project Falcon City (4.6msf, PEPL share of 35.7%) and garnered strong sales of ~INR9.8b. It accounted for ~75% of overall pre-sales in 1QFY15 of 2.1msf (INR13b) v/s 0.99msf (INR6b) in 4QFY14. It met with ~30% of FY15 pre-sales guidance in 1Q. New leasing in 1QFY15 was 0.69msf (PEPL share of 0.06msf) v/s guidance of 2msf of annual leasing in FY15. Rental income grew 4% QoQ (+30% YoY) to INR746m. We estimate rentals of INR3.5b (annualized INR3.8b) in FY15E, largely in line with management guidance. Customer collections strengthened QoQ to INR7.6b (v/s INR6.6b in 4Q) led by stronger pre-sales in recent launches. Consolidated net debt stood at INR25.7b (+INR0.4b QoQ), while effective debt as PEPL's stake was stable QoQ at INR24.6b (0.76x). FCFE break-even was attributable to (a) cash inflow of INR8.5b (collections of INR7.6b and rent of INR0.7b) to have been utilized towards (b) construction spends (INR5b), overheads (INR0.7b), interest (INR0.8b), tax (INR0.4b) and implied land advances (~INR0.9b)."

"We prefer PEPL as one of the most resilient bet in realty universe due to (a) strong business model with robust annuity support, (b) strategic project locations, execution ability and smart product proportions which keep it ahead of competition to maintain steady pre-sales and (c) visibility of growing cash flow and positive FCFE by FY16. PEPL trades at 13.9x FY16E EPS and 2.2x FY16E BV (estimated RoE of ~16%). We maintain a Buy with a target price of INR284," says Motilal Oswal research report.

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

23.08 | 0 komentar | Read More

Bhushan Steel's CFO Arun Agrawal arrested

Bhushan Steel had taken a loan of about Rs 100 crore from Syndicate Bank and was trying to settle that loan defaulter by bribing SK Jain who is the chairman cum MD of Syndicate Bank.

The CBI continues its crackdown on the  Syndicate Bank bribes-for-loan scam. The CFO of Bhushan Steel , Arun Agrawal, has been arrested.

All the three firms that are allegedly involved in the scam, the Syndicate Bank,  Prakash Industries and Bhushan Steel tanked in trade today.

Bhushan Steel had taken a loan of about Rs 100 crore from Syndicate Bank and was trying to settle that loan defaulter by bribing SK Jain who is the chairman cum MD of Syndicate Bank.

Sources in the CBI have suggested that SK Jain threatened Bhushan Steel officials to make a deal to help evade the loan default. Neeraj Singhal who is the VC of Bhushan Steel is waiting investigation by CBI and the CFO is under arrest.

The second case pertains to credit facility extended to Prakash Industries where the company had taken a loan of about Rs 120 crore. CBI has alleged that the credit facility was extended to this company in lieu of bribe.

Sources say that CBI is checking whether proper due diligence was done under Reserve Bank of India (RBI) guidelines before extending this benefit to Prakash Industries. All nine and SK Jain were arrested on Saturday and are in CBI custody.

23.08 | 0 komentar | Read More

Kolkata receives first spell of heavy rain in August

Kolkata has been doing fairly well in terms of Monsoon rain since July, unlike other parts of the country. And keeping up the trend, the city observed some heavy rain on Sunday. However, the spell of rain was patchy in nature. In a span of 24 hours, from 8.30 am on Sunday the Alipore Observatory recorded 123 mm of rain, while the Dum Dum Observatory observed only 23 mm of rain.

According to Skymet Meteorology Division in India, the well-marked low in the north Bay of Bengal and adjoining Odisha, vital for giving the present spell of rain in Kolkata will shift towards Central India in the next 48 hours due to which rain will decrease in the city.

However, there is not going to be a lull in the city as all the weather systems like cyclonic circulations, well-marked lows and depressions form in the north Bay of Bengal and adjoining Odisha, which is close to the city. The strategic location of Kolkata helps the city in receiving frequent rain throughout the Monsoon season.

On an average, Kolkata receives 400 mm of rain in the month of July but the city has observed only 300 mm during the month. August has started off on a good note with Alipore receiving 123 mm of rain but this spell cannot be taken as a trend for the month. The average monthly rainfall for August is 352 mm.

The Sub Himalayan west Bengal sub-division is already facing a deficit of 17% from the period 1st June to 3rd August.

Picture courtesy: travelworldonline.in

By: Skymetweather.com

23.08 | 0 komentar | Read More

Buy DLF; target of Rs 250: Religare Capital

Religare Capital is bullish on DLF and has recommended buy rating on the stock with a target of Rs 250 in its August 04, 2014 research report.

Religare Capital`s research report on DLF

Q1 PAT improves on margin gains: Adjusted for a one-time loss of Rs 3bn (non-core asset sales), DLF's Q1FY15 PAT of Rs 1.5bn was 27% ahead of our estimates (-36% QoQ) aided by a beat on margins. QoQ, revenue and PAT were weak owing to lower POCM revenue recognition and limited volumes. P&L numbers are expected to remain low till new projects start contributing to revenue by Q4FY15.

Operational numbers still weak: New sales remained weak at 0.38msf though leasing was steady at 0.71msf. Management's commentary worsened, now expecting steady-state volumes to take six quarters to materialise, as the near-term focus remains on execution rather than new launches. This implies softer volumes and hence cash flows through FY16.

Net debt increases slightly on capex/operational cash: Net debt increased by Rs 5bn QoQ to Rs 191bn led by capex and land acquisition costs of Rs 2.4bn combined, along with negative operational cash flow. The company's short-term goal remains to improve the quality and tenure of debt by CMBS and maintain the current levels via asset sales.

Maintain BUY: Protracted volume recovery would weigh on the stock in the near term. However, steady growth in both the rental portfolio and macro climate should mean limited downside from current levels. Maintain BUY with a Sep'15 TP of Rs 250.

"DLF reported weak Q1FY15 volumes of 0.38msf (0.44msf in Q4FY14) and gave a cautious outlook on DevCo sales, as the focus remains on execution and not on new launches till the market improves. Adj. PAT of Rs 1.5bn was 27% better than expected despite lower revenues (Rs 17bn, 17% below) on better POCM margins (43% vs. 30% RCMLe). While sluggish volume recovery would weigh on near-term performance, a steady rental business and improving macro outlook would mean limited downside from current levels. Maintain BUY," says Religare Capital research report.

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Buy CESC; target of Rs 830: Emkay

Emkay Global Financial Services is bullish on CESC and has recommended buy rating on the stock with a target of Rs 830 in its August 02, 2014 research report.

Emkay Global Financial Services research report on CESC

"CESC's 1QFY15 APAT of Rs1.5bn is above estimate of Rs1.4bn, despite slightly lower other income indicating slightly better ROEs. However, quarterly numbers can't be extrapolated in regulated business. More important is Spencer's store level EBITDA at Rs61/SqFt (as against Rs59/SqFt in 4Q14 & Rs63/SqFt in FY14). Given that almost 15% area addition in Spencer's has happened in past 2 quarters, Rs61/SqFt is an okay number (EBITDA break-even at Rs80-85/SqFt, which mgmt guides for in 4Q15/1Q16). Chandrapur losses in the quarter stood at Rs450mn (my estimate based on generation and merchant rates). Maintain estimates, key triggers for CESC remains signing of Chandrapur PPAs in the near-term and Spencer's EBITDA break-even in mid-term."

"Remain positive from 1-1.5 year view, with earnings triggers in place: 1) visibility on Chandrapur PPA signing increasing with UPERC asking for power from alternative sources for Noida (So, TN-100MW done, Noida and Tata power Mumbai in different stages for 200MW each), 2) Spencer's loss reduction and break-even by 4Q15/1Q16, 3) Haldia on track for commissioning in 4Q15, 4) distribution business consistently earning 19-20% ROE, and 5) FSL delivering good results. CESC is turning out to be a good mix of earnings growth, value unlocking (Spencer's demerger and listing or stake sale) and value pick (7.6x FY16E EPS and 1.1x Book). Despite the stock run-up (has come off recently from peak), we continue to retain it as our top-pick, as we believe the stock has a significant upside even from these levels. Further, amongst the private power distribution companies in India (Torrent, TPWR, Reliance Infra, etc.), CESC remains well placed in terms of balance sheet and is likely to generate internal accruals of Rs10- 11bn/yr from FY16E. Given this backdrop, CESC is well poised to benefit from likely significant opportunities in this segment. We value CESC on a SOTP basis on FY16E, with a target price of Rs830/share. Key downside risk - Chandrapur PPAs not materializing, slowing economy impacting Spencer's operations and tariff reduction in the Kolkata distribution circle," says Emkay Global Financial Services research report.      

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Buy Jagran Prakashan; target of Rs 154: Angel Broking

Angel Broking is bullish on Jagran Prakashan and has recommended buy rating on the stock with a target of Rs 154 in its August 04, 2014 research report.

Angel Broking`s research report on  Jagran Prakashan

"Jagran Prakashan (JPL) reported a subdued set of results for 1QFY2015, both on the top-line and bottom-line front. The top-line growth was slightly lower, mainly due to lower growth in advertising revenue. The company's performance was subdued on the profitability front as well, owing to a slightly lower operating performance and a higher tax rate (up 952bp). We maintain our Buy rating on the stock."

"The company's advertising revenue growth for the quarter was subdued at 7.3% yoy to Rs288cr, primarily driven by increase in yields. Circulation revenue was up by 12.8% yoy to Rs90cr due to a combination of increase in cover price and volume growth. Consequently, the standalone top-line grew by 7.5% yoy to Rs414cr. The standalone EBITDA grew by 4.5% yoy to Rs106cr and the OPM contracted by 73bp yoy to 25.6% owing to higher news print cost. The net profit de-grew by 5.6% yoy to Rs56cr due to higher tax rate (up 952bp). Considering Dainik Jagran's status as the most read Hindi newspaper and its strong presence in the rapidly growing Hindi markets of Bihar, Haryana, Jharkhand, Punjab, Madhya Pradesh and Uttar Pradesh, we expect JPL to benefit most from an eventual recovery in the Indian economy. Hence, we maintain our Buy rating on the stock with a target price of Rs154," says Angel Broking research report.     

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Buy Ipca Labs; target of Rs 986: Angel Broking

Angel Broking is bullish on Ipca Labs and has recommended buy rating on the stock with a target of Rs 986 in its August 04, 2014 research report.

Angel Broking`s research report on Ipca Labs

"For 1QFY2015, IPCA Laboratories (Ipca) posted sales and net profit just in line with our expectations. The company posted sales of Rs928cr (V/s an expected Rs913cr), ie a growth of 17% yoy. The sales growth was driven by exports, which rose by 14.3% yoy, while domestic sales grew by 20.7% yoy. On the OPM front, the margins came in at 24.0% (V/s an expected 22.9%), an expansion of 410bp yoy, mainly on back of GPM expansion and lower rise in other expenditure. Thus, the Adj. PAT came in at Rs145.5cr (V/s an expected Rs147.8cr), registering a growth of 34.7% yoy. The company has reduced its revenue growth guidance to 12% (from an earlier 17-18%), with EBITDA margins guided to fall by 100bp yoy to 24% (earlier guidance was of 25-25.5%). The revision takes into account the temporary discontinuation of operations to the US. We retain our Buy on the stock with a price target of Rs986."

"The company posted sales of Rs928cr (V/s an expected Rs913cr), a yoy growth of 17.0%. The sales growth was driven by exports, which rose by 14.3% yoy, while domestic sales rose by 20.7% yoy. On the OPM front, the margins came in at 24.0% (V/s an expected 22.9%), an expansion of 410bp yoy, mainly on back of GPM expansion. The GPM for the quarter stood at 63.1%, V/s 59.1% in 1QFY2014. The OPM was also aided by a lower rise in other expenditure (of 13.8% yoy). Thus, the Adj. PAT came in at Rs145.5cr (V/s an expected Rs147.8cr), registering a yoy growth of 34.7%. We expect net sales to post a CAGR of 18.8% to Rs4,563cr and EPS to register a CAGR of 20.9% to Rs58.8 over FY2014–16E, driven by the US and domestic markets. At the current levels, the stock is trading at 15.9x and 13.4x FY2015E and FY2016E earnings, respectively. We recommend a Buy on the stock with a price target of Rs986," says Angel Broking research report.  

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Ponzi scheme probe: Sebi can't authorise search seizure

The government had no troubles in tabling the Securities Law Amendment Bill in the Lok Sabha today, the bill was supposed to empower the market regulator to tackle the rising menace of ponzi schemes, but the bill has not given any teeth to the market regulator Sebi.

The government had no troubles in tabling the Securities Law Amendment Bill in the Lok Sabha today, the bill was supposed to empower the market regulator to tackle the rising menace of ponzi schemes, but the bill has not given any teeth to the market regulator Sebi.

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Sahara chief to be shifted to Tihar jail out-house tomorrow

According to sources, Sahara is looking to retain the crown jewel - Grosvenor House - eyeing other financing options.

Sahara chief Subrata Roy will be moved to the out-house in Tihar jail on Tuesday. With Roy finally stepping out of the jail cell, Sahara is claiming that the negotiations for overseas properties are likely to gather pace. According to sources, Sahara is looking to retain the crown jewel - Grosvenor House - eyeing other financing options.

The company released a statement, according to which, Sahara is open to considering diverse financial options vis-à-vis the international properties.

The options include refinancing and mortgaging but there are various odds that are stacked against them with respect to the property already being mortgaged. But given the symbolic value, given the sentimental value and the huge sum which is in excess of about 500 million pounds, the onus is now on Sebi for verification. With all these issues in mind Sahara is not keen on selling Grosvenor House but keen on retaining its crown jewel.

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